A business has the following costs: Rent: (none, the owner owns the building. Similar stores rent for $5000 a month) Workers: $10000 a month Owner salary: none. The owner simply takes profits away and has no official salary. He could make $6000 a month if he worked somewhere else NOTE: KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED FOR MULTIPLE QUESTIONS What are the ECONOMIC profits of this business if revenues are $20000 a month?     Question 2 options:   5000   10000   -1000   4000

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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A business has the following costs:

Rent: (none, the owner owns the building. Similar stores rent for $5000 a month)

Workers: $10000 a month

Owner salary: none. The owner simply takes profits away and has no official salary. He could make $6000 a month if he worked somewhere else

NOTE: KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED FOR MULTIPLE QUESTIONS

What are the ECONOMIC profits of this business if revenues are $20000 a month?

 

 

Question 2 options:

 

5000

 

10000

 

-1000

 

4000

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